The Euro (EUR) is entering Wednesday’s NA session unchanged against the US Dollar (USD) as it extends its recent consolidation with ongoing congestion around 1.1650, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Markets consider Lagarde speech on trade, forecasts, and policy

"The final euro area CPI was unchanged from the preliminary/flash estimate, printing 2.0% y/y on headline and 2.3% y/y on core. ECB President Lagarde spoke earlier, discussing trade policy and its implications for the central bank."

"Lagarde said that ECB staff will be incorporating the US/EU trade deal into their September projections however the comments had no discernible impact on the short-term rates market, which continues to price ~12bpts of easing into the end of the year."

"The multi-month trend remains bullish with a clear sequence of higher highs and higher lows since February. The latest 10 session consolidation has centered around 1.1650 and the lack of direction has softened momentum dragging the RSI back toward the neutral 50 level. The 50 day MA (1.1644) has offered some closing support, and we look to a near-term range bound between 1.1600 and 1.1720."